HB5126 Summary: Illinois Rural Water Authority Act

• Creates the Illinois Rural Water Authority as a political subdivision and municipal corporation with territory coterminous with the State, divided into 8 districts with one director per district plus one at-large director (9 total) appointed by the Governor.

• Authorizes the Authority to issue revenue bonds to develop, construct, acquire, or improve water and sewage facilities in rural areas (communities with populations under 10,000), with bonds maturing up to 40 years and payable solely from project revenues.

• Grants the Authority power to acquire property by purchase, lease, gift, or condemnation under the Eminent Domain Act; restricts quick-take powers within municipalities and counties unless authorized by local governing bodies.

• Allows units of local government to issue and sell local government securities to the Authority at negotiated interest rates and to pledge state receipts to secure bonds issued for water and sewage projects.

• Prohibits the Authority from levying taxes or pledging state credit; establishes conflict of interest restrictions limiting board members and employees from holding ownership interests over 7.5% in entities with Authority contracts.